How Bitcoin Works in 5 Minutes (Technical)

6,106,451 views
Apr 14, 2014
CuriousInventor
68.5K subscribers
A short introduction to how Bitcoin Works. If you'd like to support the creation of additional content, here's a bitcoin/lightning donation address: http://bit.ly/2NldSYA fiat support: https://www.patreon.com/CuriousInventor Want more? Check out my new in-depth course on the latest in Bitcoin, Blockchain, and a survey of the most exciting projects coming out (Ethereum, etc): https://app.pluralsight.com/library/c... Lots of demos on how to buy, send, store (hardware, paper wallet). how to use javascript to send bitcoin. How to create Ethereum Smart Contract, much more. Written Version: http://www.imponderablethings.com/201... Less technical version: https://www.youtube.com/watch?v=t5JGQ... Germain caption translation provided by adi331 : 19s6rqRfHa19w7wcgwtCumPs1vdLDj1VVo (thanks!!)
I think the terms need to be a bit more relate-able for most people to understand. Like the voting and lottery, happens automatically and is known as the process of mining and miners. You mention miners once or so at the end but talk about the process of it from the halfway point to the end. Also, I think for the most part, it needs to be noted that this entire process happens automatically behind the scenes. The way you explain it almost sounds like a lot of it has to be done manually on a PC by the users. For example when u first the validation / voting process, it sounds like in order for a users transaction to be accepted into a block, that user would have to generate the block ; another manual implication.
153
The 22 min video is much better than this one. Although, I had to watch it like 4 times to get a better understanding of it . The BitCoin system is really complicated and is very very advanced . Watching that video is a must if you are planning on getting into the BitCoin world. Thanks for it video creator !!
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I'm more confused about Bitcoins than I was before watching this video
3.9K
Really nice videos, I have watched both this one and your more technical version. It has helped me to understand how bitcoin works. I am however stuck on the physical issues that are apparent in the future ie.. Total coin count maxes = inflation of bit coins. And the physical size of the ledger files becoming too large.
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I'm a software dev with 3 decades of experience, but still struggle comprehending all of the bitcoin ecosystem. The 22 minute "How bitcoin Mining Works" helps greatly, but it would help to see an explanation (i.e. historical analysis) of the first 10 or 20 transactions starting at block 0. The genesis block started with 50 BTC, so how did that get spent, when was the first block created, how many transactions did it have, how did new BTC produced by the miners get spent into the transaction chain etc. I'm thinking if I saw how the 3 purposes of mining were fulfilled thru the actual early transactions it would "click" for me and all the pieces would lock into coherent understanding.
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Finally found the a video with the perfect degree of technicality for me to understand!! Thanks this was awesome!
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Great graphics but talks so fast about so much technical detail in just 5 mins that after watching it twice I still only vaguely understand it.
730
Really nice video! very elaborate and easy to understand.  I don't get why people are saying this is hard to understand, it has some very technical things  but you can get the idea.  I'll check out more of your stuff when I have time ^^ 
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Wow that's confusing. The guy who created this was definitely a genious to have all these checks and balances to have such a sustainable system. And no one even knows who created this system.
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I didn't feel like you explained the double spending prevention and how it translates to the block-chain. How does the "lottery" determine which transaction is legitimate? The way it's explained above implies that both transactions would enter the pool and whichever hash match occurs first gets added to the end of the chain. It obviously can't work this way. Thanks for the video! Lots of good information here.
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Yeah thanks for going technical! There are so many vids ''how does this work'' that actually don't say anything informative
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Thank you for explaining this in simple terms. (I still don't understand it yet but was able to get a lot.) I will do more research now, cheers.
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these videos are all boost up my mind. Thanking you.
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A question for anyone who can answer please? If the bitcoin mining countinually gets more difficult when more bitcoins are mined, wouldn't that mean that our numerical system is not infinite? Thanks
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Thank you. Mathematically of course. 👍
That was the best explanation Ive evr seen. Kudos, sir!
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This really helped me understand bitcoin better thanks dude! :D You did a really good job at explaining it all.
173
Dude , awesome video i made one myself ( a non technical video, but in german )  and i thought it was good but now you made this and now i feel like shit :D .. You're really good at explaining , if you want  german subtitles for your video message me. By the way you improved your animation skills .
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Actually one of the better descriptions I have read/watched. I think I almost understand it now!
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Your videos rock!
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